Constellation Brands, which currently owns 50% of Crown Imports, has signed a definitive agreement with Anheuser-Busch InBev to purchase the remaining 50% interest in Crown as AB InBev completes its proposed acquisition of Modelo.
The purchase price is $1.85bn and represents 50% of a multiple of approximately 8.5 times Crown's EBIT. The transaction, which is subject to regulatory approval, is expected to close during the first quarter of calendar 2013.
Rob Sands, president and chief executive officer, Constellation Brands, said: "Our full ownership of this significant beer business provides an additional strategic lever for driving overall profitable organic growth."
Crown's portfolio of brands includes Corona Extra, Corona Light, Modelo Especial, Pacifico, Negra Modelo and Victoria.
Under the terms of the transaction, Constellation Brands and Crown will have complete, independent control of distribution, marketing and pricing for all Modelo brands in the US, while AB InBev will ensure continuity of supply, quality of products and the ability to introduce innovations.
Source: Constellation Brands
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